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SpiceJet adds maiden 737 NG freighter, more on the way

Charles Kauffman by Charles Kauffman
September 10, 2018
in E-Commerce, Freighter Conversions, News Archives
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SpiceJet has taken redelivery of its first 737-700BDSF freighter, on-lease from Spectre Cargo. The aircraft will form the backbone of SpiceJet’s newly-launched cargo subsidiary, SpiceXpress. Photo: Spectre Cargo

Today, India-based low-cost carrier SpiceJet took redelivery of its maiden freighter, a Bedek Aviation Group-converted 737-700BDSF (29042, ex-Xiamen Airlines), to support the launch of a newly created cargo subsidiary, SpiceXpress. The aircraft, on-lease from Spectre Cargo, is the first of four Spectre-leased 737 NG freighters SpiceXpress plans to put into service over the next few months as part of the carrier’s initial foray into freighter operations.

The freighter, named “Bolt”, represents a number of milestones as it not only makes SpiceJet the first combination carrier in India to operate narrowbody freighters but is also the first 737 NG freighter in Asia. In the coming months, Bolt will be joined by three more 737-NG freighters – an additional -700BDSF and two 737-800BDSFs. Although local media reported SpiceJet’s forthcoming freighter redeliveries as imminent within the next couple of months, Cargo Facts expects redeliveries to continue into 2019.

While Spectre Cargo Capital has already acquired a number of 737-700 and -800 feedstock units for future conversion to freighter configuration, only one -800 (30498, ex-Transaero Airlines) is known to be owned by Spectre. This unit was inducted for conversion at Bedek’s Tel Aviv MRO last year, and will be Bedek’s first 737-800 P2F conversion. Like the 737-700BDSF delivered today, the -800 is also bound for SpiceJet. A second -700 has also been inducted for conversion at the HAITE facility in Tianjin (TSN).

Apart from the -800 in Tel Aviv, Spectre has at least five additional 737-700s in storage at Singapore Seletar (XSP) and likely owns other units through various special purpose vehicles (SPVs) stored elsewhere. Touch labor for SpiceJet’s first 737-700 conversion took just over three months, according to Cargo Facts’ FAT database. SpiceJet’s 737-700BDSF has a maximum payload of about 20 tonnes (45,000lbs) and is equipped with an Ancra Cargo Loading System.

Returning to India’s first 737 NG, we note that other Indian carriers such as Air India and start-ups like Quikjet have dabbled with freighter operations in the past, but to date have found little success. One exception has been Blue Dart Aviation, a company that started out as the air arm of Blue Dart Express and now serves a similar function for DHL, which bought Blue Dart. Blue Dart Aviation commenced operations with a single 737-200F in 1995, and today operates a total of six 757-200Fs.

SpiceJet, however, is convinced that India’s recent e-commerce boom will be the catalyst that finally drives the development of a domestic air cargo market. Noting the influx of investment from e-commerce players like Amazon and Flipkart, Ajay Singh, chairman and managing director, SpiceJet, told reporters at a launch event for SpiceXpress that the market for time-sensitive express deliveries in India is positioned to become a significant business. As early as 18 September, the SpiceXpress freighter could enter revenue service for the airline on routes between New Delhi (DEL) and Bengaluru (BLR). As additional freighters are redelivered, SpiceXpress plans to open up international routes such as Hong Kong (HKG).

Learn more about e-commerce and its impact on demand for freighter aircraft 10-12 October at  Cargo Facts Symposium, where a roundtable panel discussion will be dedicated to the topic. For more information, or to register, visit www.cargofactssymposium.com.

Tags: 737-700F737-800Ffreighter aircraftfreighter aircraft transactionsIAIIndiapassenger freighterSpectre Air CapitalSpicejet
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